Nigeria’s Net Domestic Credit Falls by 12.8% to N98.97 Trillion!

Nigeria’s Net Domestic Credit Falls by 12.8% to N98.97 Trillion!

Reported by Amos Dachung | Sele Media Africa Reporter

Nigeria’s net domestic credit (NDC) declined sharply by 12.8 percent year‑on‑year to N98.97 trillion in August 2025, according to the latest data published by the Central Bank of Nigeria (CBN). [1] The figure represents a significant contraction compared with N113.46 trillion recorded for the same period in 2024.

Breaking the number down, bank credit to government stood at N23.133 trillion in August 2025, while credit to the private sector was N75.843 trillion. [1] Analysts point to persistent tight monetary policy, high borrowing costs and weak credit demand as key drivers of the slump.

Economist Muda Yusuf of the Centre for the Promotion of Private Enterprise (CPPE) commented that while the drop reflects the CBN’s efforts to tame inflation, it also signals risks for business funding and economic growth. [1]
The contraction in domestic borrowing poses challenges to the broader economy, where private sector lending is critical for job creation, investment and manufacturing. As Nigeria navigates a period of monetary adjustment, stakeholders warn that structural reforms must accompany the credit slowdown to sustain recovery.

Citations:

1. Vanguard News: www.vanguardngr.com/2025/10/nigerias-net-domestic-credit-drops-by-12-8-to-n98-97-trn?utm_source=chatgpt.com

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Marian Opeyemi Fasesan

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Marian Opeyemi Fasesan is a dynamic journalist and editorial leader committed to excellence in news reporting and storytelling. As the Editor-in-Chief of Sele Media Africa, she ensures daily operations run smoothly while upholding the highest editorial standards. With a strong eye for detail and deep understanding of audience engagement, Marian coordinates content across platforms, guiding teams to produce compelling, timely, and credible news. Her leadership reflects the heart of Sele Media Africa’s mission—to inform, inspire, and elevate voices across the continent.

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